Solana Slides 9% Amid Market Downturn: Here’s Why

Solana plunged 9% in the last 24 hours following a wider crypto market downturn. This crypto market crash comes after most assets notched mid-week gains yesterday, an attempt to consolidate the short-term Bitcoin halving momentum.

Solana, an institutional investor favorite token due to inflows is down following a market trend despite several positive signals for the asset. The sharp daily outflows bring down weekly highs to 6.1%. Before this, Solana outpaced other crypto assets after the massive liquidation recorded two weeks ago. 

SOL’s monthly position is down 25.96% although bulls eye long-term positions should macroeconomic factors flip and sentiment change. At press time, the price of SOL stands at $144.54 with a market capitalization of $64.6 billion. 

A key indicator of Solana’s bullish outlook according to most commentators is the 30% increase in day trading volumes as a result of heightened on-chain activities. 

Why Is Solana Down?

Solana is down for several reasons ranging from macroeconomic factors to the general market performance. In the last 24 hours, the crypto market plummeted 4.84% sparked by a fall in top assets. 

Macro factors like US President Joe Biden’s proposed 44.6% capital gain tax have impacted investor sentiment today. Other persisting concerns like interest rate cuts and consumer figures have triggered traders’ direction. 

Reduced inflows to spot Bitcoin ETF have contributed to the crypto market downturn in the last 24 hours l. Last week, crypto institutional products recorded outflows showing signs of slow growth. The figures meant products saw outflows for the second consecutive week. 

Wider Market Crash

Bitcoin (BTC) is down 4% today while Ethereum (ETH) fell 4.71% in the same period. This drop can be seen in most assets and memecoins wiping out previous gains. 

Ripple (XRP), Cardano (ADA), and Avalanche (AVAX) posted 4.4%, 5.59%, and 10.32% in the last 24 hours while Toncoin (TON) and Chainlink saw a 9.14% and 6.06% decline today. 

The memecoin ecosystem also contributed to the fall of the crypto market cap with tokens posting slight losses. 

Also Read: BNB Update: Top Reasons Why BNB Might Hit $700 Soon